New Risk • Apr 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.2% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (48% net profit margin). Revenue is less than US$5m (LK₨850m revenue, or US$2.7m). Market cap is less than US$100m (LK₨3.84b market cap, or US$12.1m). Reported Earnings • Apr 28
First quarter 2026 earnings released: EPS: LK₨4.06 (vs LK₨4.92 in 1Q 2025) First quarter 2026 results: EPS: LK₨4.06 (down from LK₨4.92 in 1Q 2025). Revenue: LK₨213.2m (up 19% from 1Q 2025). Net income: LK₨48.7m (down 18% from 1Q 2025). Profit margin: 23% (down from 33% in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 49% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Mar 24
Upcoming dividend of LK₨4.00 per share Eligible shareholders must have bought the stock before 31 March 2026. Payment date: 23 April 2026. Payout ratio is a comfortable 20% and the cash payout ratio is 86%. Trailing yield: 2.5%. Lower than top quartile of Sri Lankan dividend payers (4.8%). Lower than average of industry peers (2.9%). Aankondiging • Mar 09
Commercial Development Company PLC, Annual General Meeting, Mar 30, 2026 Commercial Development Company PLC, Annual General Meeting, Mar 30, 2026, at 09:30 Sri Lanka Standard Time. Location: at the auditorium of commercial bank of ceylon plc, 9th floor, union place branch building, no. 01, union place, colombo 02, Sri Lanka Reported Earnings • Mar 08
Full year 2025 earnings released: EPS: LK₨35.13 (vs LK₨48.55 in FY 2024) Full year 2025 results: EPS: LK₨35.13 (down from LK₨48.55 in FY 2024). Revenue: LK₨815.9m (up 15% from FY 2024). Net income: LK₨421.5m (down 28% from FY 2024). Profit margin: 52% (down from 82% in FY 2024). Over the last 3 years on average, earnings per share has increased by 36% per year whereas the company’s share price has increased by 41% per year. Declared Dividend • Feb 16
Dividend of LK₨4.00 announced Dividend of LK₨4.00 is the same as last year. Ex-date: 31st March 2026 Payment date: 23rd April 2026 Dividend yield will be 2.2%, which is lower than the industry average of 9.0%. Sustainability & Growth Dividend is well covered by both earnings (19% earnings payout ratio) and cash flows (44% cash payout ratio). The dividend has increased by an average of 1.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Jan 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Large one-off items impacting financial results. Revenue is less than US$5m (LK₨785m revenue, or US$2.5m). Market cap is less than US$100m (LK₨3.74b market cap, or US$12.1m). Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨332, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 18x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 305% over the past three years. New Risk • Dec 05
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: LK₨3.02b (US$9.81m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (LK₨3.02b market cap, or US$9.81m). Minor Risks Large one-off items impacting financial results. Revenue is less than US$5m (LK₨785m revenue, or US$2.5m). Declared Dividend • Nov 15
First half dividend of LK₨3.00 announced Dividend of LK₨3.00 is the same as last year. Ex-date: 24th November 2025 Payment date: 12th December 2025 Dividend yield will be 2.6%, which is lower than the industry average of 9.0%. Sustainability & Growth Dividend is covered by both earnings (14% earnings payout ratio) and cash flows (65% cash payout ratio). The dividend has increased by an average of 1.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 10.0% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to LK₨265, the stock trades at a trailing P/E ratio of 5.5x. Average trailing P/E is 12x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 262% over the past three years. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨180, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 11x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 145% over the past three years. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: LK₨4.92 (vs LK₨5.04 in 1Q 2024) First quarter 2025 results: EPS: LK₨4.92 (down from LK₨5.04 in 1Q 2024). Revenue: LK₨178.9m (up 2.1% from 1Q 2024). Net income: LK₨59.0m (down 2.4% from 1Q 2024). Profit margin: 33% (down from 35% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 16% per year and the company’s share price has also increased by 16% per year. New Risk • May 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (LK₨1.81b market cap, or US$6.04m). Minor Risks Share price has been volatile over the past 3 months (6.2% average weekly change). Large one-off items impacting financial results. Revenue is less than US$5m (LK₨708m revenue, or US$2.4m). Upcoming Dividend • Mar 21
Upcoming dividend of LK₨4.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 22 April 2025. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 5.2%. Lower than top quartile of Sri Lankan dividend payers (6.0%). In line with average of industry peers (5.0%). Aankondiging • Mar 05
Commercial Development Company PLC, Annual General Meeting, Mar 27, 2025 Commercial Development Company PLC, Annual General Meeting, Mar 27, 2025, at 11:00 Sri Lanka Standard Time. Location: auditorium of commercial bank of ceylon plc, 9th floor, commercial bank union place branch, building, no. 01, union place, colombo 02., Sri Lanka Declared Dividend • Feb 27
Final dividend of LK₨4.00 announced Shareholders will receive a dividend of LK₨4.00. Ex-date: 28th March 2025 Payment date: 22nd April 2025 Dividend yield will be 5.1%, which is lower than the industry average of 9.0%. Sustainability & Growth Dividend is well covered by both earnings (17% earnings payout ratio) and cash flows (49% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 9.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Aankondiging • Nov 14
Commercial Development Company plc Announces Change in Chief Executive Officer Commercial Development Company PLC informed that Mr. Kirthi Basnayake has been appointed as the Chief Executive Officer of the Company with effect from October 1, 2024, pursuant to the retirement of former Chief Executive Officer, Mr. Ruwan Nimal De Silva, on July 07, 2024. The company informed that although the Board resolved to approve the proposal to appoint Mr. Basnayake as the Chief Executive Officer with effect from October 1, 2024, which was done by way a circular resolution on August 23, 2024, the ratification of the above Circular Paper was done at the quarterly meeting of the Board of Directors which was held on November 07, 2024. Hence, they regret the delay in informing the appointment of Mr. Basnayake as the Chief Executive Officer of the Company to the Colombo Stock Exchange. Mr. Kirthi Basnayake a retired captain of Sri Lanka Navy and completed over 34 years of service including 25 years of experience in various senior capacities in the fields of Operations, Administration, Human Resources, Engineering and Training. Prior joining Commercial Development Company PLC as the CEO, he functioned as the Head of Human Resource & Administration at Property Development PLC/Ltd, a fully owned Subsidiary of the Bank of Ceylon. He functioned as the Registrar and Chief Administrative Officer of the Kotalawela Defence University and KDU Hospital prior joining PDL from 2016 to 2018. In addition, he was also the Senior Deputy Dean of the Faculty of Defence and Strategic Studies of the KDU. He has obtained his Bachelor's Degree in Mechanical Engineering and has three Masters Degrees in the fields of Management, Strategic and Military Studies and E- Governance. He has undergone aforesaid training from institutions from India, Bangladesh and China. Further. he had functioned as a lecturer on Management, Human Resources, Strategic Management, Organizational Behavior and Defence related subjects for Undergraduates and Masters level students in various institutions. He is an associate member of the Institute of Management of Sri Lanka, was an Executive Committee Member of the Sri Lanka Handball Federation and Squash Federation and at present he is an Executive Committee Member of the KDU Alumina. Kirthi is a recipient of gallantry medals of Rana Wickrama Padakkama, Two Rana Sura Padakkama for his remarkable performance on bravery and a recipient of Uttama Seva Padakkama, Videsha Seva Padakkama along with nine other medals and decorations for his utmost dedication, commitment and unblemished integrity and reckonable service to the Sri Lanka Navy and the Nation. Upcoming Dividend • Nov 12
Upcoming dividend of LK₨3.00 per share Eligible shareholders must have bought the stock before 19 November 2024. Payment date: 06 December 2024. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 5.3%. Lower than top quartile of Sri Lankan dividend payers (7.7%). Lower than average of industry peers (6.1%). Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: LK₨5.93 (vs LK₨6.69 in 3Q 2023) Third quarter 2024 results: EPS: LK₨5.93 (down from LK₨6.69 in 3Q 2023). Revenue: LK₨180.8m (up 2.4% from 3Q 2023). Net income: LK₨71.1m (down 11% from 3Q 2023). Profit margin: 39% (down from 46% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: LK₨4.23 (vs LK₨5.64 in 2Q 2023) Second quarter 2024 results: EPS: LK₨4.23 (down from LK₨5.64 in 2Q 2023). Revenue: LK₨174.4m (up 4.5% from 2Q 2023). Net income: LK₨50.7m (down 25% from 2Q 2023). Profit margin: 29% (down from 41% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 8% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 07
First quarter 2024 earnings released: EPS: LK₨5.04 (vs LK₨4.17 in 1Q 2023) First quarter 2024 results: EPS: LK₨5.04 (up from LK₨4.17 in 1Q 2023). Revenue: LK₨175.3m (up 5.4% from 1Q 2023). Net income: LK₨60.5m (up 21% from 1Q 2023). Profit margin: 35% (up from 30% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 4% per year. Upcoming Dividend • Mar 21
Upcoming dividend of LK₨4.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 22 April 2024. Payout ratio is a comfortable 29% and the cash payout ratio is 77%. Trailing yield: 6.3%. Lower than top quartile of Sri Lankan dividend payers (8.2%). Lower than average of industry peers (8.1%). New Risk • Feb 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 5.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 5.0% per year over the past 5 years. Market cap is less than US$10m (LK₨1.30b market cap, or US$4.19m). Minor Risks Share price has been volatile over the past 3 months (5.0% average weekly change). Large one-off items impacting financial results. Revenue is less than US$5m (LK₨688m revenue, or US$2.2m). Reported Earnings • Feb 21
Full year 2023 earnings released: EPS: LK₨24.51 (vs LK₨18.70 in FY 2022) Full year 2023 results: EPS: LK₨24.51 (up from LK₨18.70 in FY 2022). Revenue: LK₨687.5m (up 8.9% from FY 2022). Net income: LK₨294.1m (up 31% from FY 2022). Profit margin: 43% (up from 36% in FY 2022). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Declared Dividend • Feb 18
Dividend of LK₨4.00 announced Shareholders will receive a dividend of LK₨4.00. Ex-date: 28th March 2024 Payment date: 22nd April 2024 Dividend yield will be 6.8%, which is lower than the industry average of 9.0%. Sustainability & Growth Dividend is covered by both earnings (35% earnings payout ratio) and cash flows (87% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to decline by 61% to shift the payout ratio to a potentially unsustainable range, which is more than the 11% EPS decline seen over the last 5 years. Aankondiging • Feb 17
Commercial Development Company PLC, Annual General Meeting, Mar 27, 2024 Commercial Development Company PLC, Annual General Meeting, Mar 27, 2024. Agenda: To consider approval for final dividend of 2023. Upcoming Dividend • Nov 28
Upcoming dividend of LK₨3.00 per share at 6.3% yield Eligible shareholders must have bought the stock before 05 December 2023. Payment date: 27 December 2023. Payout ratio is a comfortable 20% and the cash payout ratio is 87%. Trailing yield: 6.3%. Lower than top quartile of Sri Lankan dividend payers (8.5%). Lower than average of industry peers (9.0%). Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: LK₨6.69 (vs LK₨6.03 in 3Q 2022) Third quarter 2023 results: EPS: LK₨6.69 (up from LK₨6.03 in 3Q 2022). Revenue: LK₨176.5m (up 7.7% from 3Q 2022). Net income: LK₨80.3m (up 11% from 3Q 2022). Profit margin: 46% (up from 44% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 6% per year. Reported Earnings • Aug 13
Second quarter 2023 earnings released: EPS: LK₨5.64 (vs LK₨4.98 in 2Q 2022) Second quarter 2023 results: EPS: LK₨5.64 (up from LK₨4.98 in 2Q 2022). Revenue: LK₨166.9m (up 6.0% from 2Q 2022). Net income: LK₨67.7m (up 13% from 2Q 2022). Profit margin: 41% (up from 38% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. New Risk • Aug 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 7.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 8.0% per year over the past 5 years. Market cap is less than US$10m (LK₨1.40b market cap, or US$4.38m). Minor Risks Share price has been volatile over the past 3 months (7.9% average weekly change). Profit margins are more than 30% lower than last year (34% net profit margin). Revenue is less than US$5m (LK₨653m revenue, or US$2.0m). Reported Earnings • May 10
First quarter 2023 earnings released: EPS: LK₨4.17 (vs LK₨4.32 in 1Q 2022) First quarter 2023 results: EPS: LK₨4.17 (down from LK₨4.32 in 1Q 2022). Revenue: LK₨166.3m (up 15% from 1Q 2022). Net income: LK₨50.0m (down 3.6% from 1Q 2022). Profit margin: 30% (down from 36% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Upcoming Dividend • Mar 27
Upcoming dividend of LK₨4.00 per share at 6.5% yield Eligible shareholders must have bought the stock before 03 April 2023. Payment date: 27 April 2023. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 6.5%. Lower than top quartile of Sri Lankan dividend payers (7.7%). Lower than average of industry peers (7.3%). Reported Earnings • Feb 25
Full year 2022 earnings released: EPS: LK₨18.70 (vs LK₨33.46 in FY 2021) Full year 2022 results: EPS: LK₨18.70 (down from LK₨33.46 in FY 2021). Revenue: LK₨631.1m (flat on FY 2021). Net income: LK₨224.4m (down 44% from FY 2021). Profit margin: 36% (down from 64% in FY 2021). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. No experienced directors. 5 highly experienced directors. Non-Executive Non-Independent Director Udul Isuru Tillakawardana was the last director to join the board, commencing their role in 2011. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 26
Third quarter 2022 earnings released: EPS: LK₨6.03 (vs LK₨5.77 in 3Q 2021) Third quarter 2022 results: EPS: LK₨6.03 (up from LK₨5.77 in 3Q 2021). Revenue: LK₨163.9m (flat on 3Q 2021). Net income: LK₨72.4m (up 4.6% from 3Q 2021). Profit margin: 44% (up from 42% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 09
Second quarter 2022 earnings released: EPS: LK₨4.98 (vs LK₨1.73 in 2Q 2021) Second quarter 2022 results: EPS: LK₨4.98 (up from LK₨1.73 in 2Q 2021). Revenue: LK₨157.4m (down 5.5% from 2Q 2021). Net income: LK₨59.8m (up 188% from 2Q 2021). Profit margin: 38% (up from 13% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Aankondiging • May 19
Commercial Development Company plc Announces Resignation of S. Renganathan as Managing Director Mr. S. Renganathan, Managing Director of the company informed his decision, by his letter dated May 11, 2022 to resign from the board of directors of Commercial Development Co. PLC, with effect from the date of his letter. Reported Earnings • May 16
First quarter 2022 earnings released: EPS: LK₨4.32 (vs LK₨8.96 in 1Q 2021) First quarter 2022 results: EPS: LK₨4.32 (down from LK₨8.96 in 1Q 2021). Revenue: LK₨144.9m (down 5.7% from 1Q 2021). Net income: LK₨51.9m (down 52% from 1Q 2021). Profit margin: 36% (down from 70% in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. MD & Executive Director Sivakrishnarajah Renganathan was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Aankondiging • Apr 07
Commercial Development Company PLC Appoints David Coughtrie as Managing Director at SDN Commercial Development Company PLC announced that David Coughtrie has been appointed Director of Distribution Partnerships and Managing Director of the ITV-owned Freeview multiplex operator SDN. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorated over the past week After last week's 19% share price decline to LK₨102, the stock trades at a trailing P/E ratio of 3x. Average trailing P/E is 12x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 77% over the past three years. Aankondiging • Feb 26
Commercial Development Company PLC, Annual General Meeting, Mar 31, 2022 Commercial Development Company PLC, Annual General Meeting, Mar 31, 2022. Agenda: To consider the final dividend for the financial year ended December 31, 2021. Reported Earnings • Feb 23
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: LK₨33.46 (up from LK₨10.22 in FY 2020). Revenue: LK₨632.3m (up 39% from FY 2020). Net income: LK₨401.5m (up 228% from FY 2020). Profit margin: 64% (up from 27% in FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Upcoming Dividend • Nov 22
Upcoming dividend of LK₨2.50 per share Eligible shareholders must have bought the stock before 29 November 2021. Payment date: 17 December 2021. Trailing yield: 3.9%. Lower than top quartile of Sri Lankan dividend payers (5.8%). Higher than average of industry peers (3.4%). Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS LK₨5.77 (vs LK₨3.21 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: LK₨165.2m (up 45% from 3Q 2020). Net income: LK₨69.2m (up 80% from 3Q 2020). Profit margin: 42% (up from 34% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Reported Earnings • Jul 28
Second quarter 2021 earnings released: EPS LK₨1.73 (vs LK₨3.07 in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: LK₨166.6m (up 46% from 2Q 2020). Net income: LK₨20.8m (down 44% from 2Q 2020). Profit margin: 13% (down from 32% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 25% share price gain to LK₨137, the stock trades at a trailing P/E ratio of 4.5x. Average trailing P/E is 17x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 130% over the past three years. Reported Earnings • May 12
First quarter 2021 earnings released: EPS LK₨8.96 (vs LK₨2.62 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: LK₨153.6m (up 39% from 1Q 2020). Net income: LK₨107.6m (up 242% from 1Q 2020). Profit margin: 70% (up from 28% in 1Q 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Upcoming Dividend • Mar 25
Upcoming dividend of LK₨3.50 per share Eligible shareholders must have bought the stock before 01 April 2021. Payment date: 27 April 2021. Trailing yield: 5.7%. Within top quartile of Sri Lankan dividend payers (4.9%). Higher than average of industry peers (4.2%). Aankondiging • Mar 09
Commercial Development Company PLC, Annual General Meeting, Mar 31, 2021 Commercial Development Company PLC, Annual General Meeting, Mar 31, 2021, at 10:00 Sri Lanka Standard Time. Location: Auditorium of Commercial Bank of Ceylon PLC, 9th Floor, Commercial Bank Union Place Branch Building No. 01, Union Place Colombo 02 Sri Lanka Agenda: To receive, consider and adopt the Annual Report of the Board of Directors on the affairs of the Company and Statement of Compliance and the Financial Statements for the year ended December 31, 2020 with the Report of the Auditors thereon; to declare a dividend as recommended by the Board of Directors; to re-elect directors; to reappoint auditors and to determine their remuneration; and to authorize the board of directors to determine donations for 2021. Reported Earnings • Feb 23
Full year 2020 earnings released: EPS LK₨10.22 (vs LK₨30.27 in FY 2019) The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: LK₨454.9m (flat on FY 2019). Net income: LK₨122.6m (down 66% from FY 2019). Profit margin: 27% (down from 80% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improved over the past week After last week's 21% share price gain to LK₨145, the stock is trading at a trailing P/E ratio of 4.7x, up from the previous P/E ratio of 3.9x. This compares to an average P/E of 10x in the Real Estate industry in Sri Lanka. Total returns to shareholders over the past three years are 160%. Is New 90 Day High Low • Jan 22
New 90-day high: LK₨130 The company is up 42% from its price of LK₨91.60 on 23 October 2020. The Sri Lankan market is up 40% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is up 14% over the same period. Valuation Update With 7 Day Price Move • Dec 31
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨117, the stock is trading at a trailing P/E ratio of 3.8x, up from the previous P/E ratio of 3.3x. This compares to an average P/E of 9x in the Real Estate industry in Sri Lanka. Total returns to shareholders over the past three years are 108%. Is New 90 Day High Low • Dec 31
New 90-day high: LK₨117 The company is up 23% from its price of LK₨95.50 on 02 October 2020. The Sri Lankan market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is down 2.0% over the same period. Is New 90 Day High Low • Dec 09
New 90-day high: LK₨106 The company is up 30% from its price of LK₨81.90 on 10 September 2020. The Sri Lankan market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is up 8.0% over the same period. Reported Earnings • Nov 12
Third quarter 2020 earnings released: EPS LK₨3.21 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: LK₨113.7m (up 2.2% from 3Q 2019). Net income: LK₨38.6m (down 1.9% from 3Q 2019). Profit margin: 34% (down from 35% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Sep 22
New 90-day high: LK₨94.40 The company is up 31% from its price of LK₨72.00 on 24 June 2020. The Sri Lankan market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is up 14% over the same period. 
